📈 Ferrosilicon Price Trends: 2023-2026 Market Tracker
FeSi75 and FeSi65 price trajectories, regional spreads, and what drives daily volatility in the global ferrosilicon market.
📊 Three-Year Price Timeline: From Recovery to Surge
Global 72% FeSi averaged $855/tonne, reflecting post-pandemic normalization. Chinese domestic FeSi75 prices opened the year near 6,024 RMB/tonne in Ningxia, supported by seasonal restocking before the Lunar New Year. By year-end, spot prices had softened to the $920/tonne range globally as steel demand weakened in Europe.
The annual average for 72% FeSi rose to $953/tonne. Electric-arc-furnace (EAF) steelmaking demand expanded, particularly in Asia-Pacific, which contributed roughly 65% of global ferrosilicon consumption. China's ferrosilicon output reached approximately 5.8 million tonnes for the full year, with Inner Mongolia alone producing 221.7 million tonnes. US spot prices for 75% FeSi tracked by S&P Global Platts ranged between 105 and 150 cents per pound.
The annual average edged up to $995/tonne, but the year showed a distinct "higher first half, weaker second half" pattern. Ningxia FeSi75 peaked at 6,161 RMB/tonne in mid-February before sliding to a low of 5,048 RMB/tonne by mid-June-a swing of roughly 1,113 RMB/tonne (~$155/tonne). Chinese full-year output dropped 14.59% year-on-year to 4.95 million tonnes, with Inner Mongolia down 17.02% and Qinghai down 21.52%. The US average spot price for 75% FeSi was 127.50 cents/lb in November 2025, down 11% from October but still firm by historical standards.
By Q2 2026, the 72% FeSi benchmark hit $1,125/tonne on a year-to-date average. As of August 2026, regional spot prices ranged from $1,080/tonne CIF Jebel Ali (Middle East) to $1,430/tonne CIF Tokyo (Japan). Chinese domestic FeSi72 traded at 5,500–5,550 RMB/tonne ($814–821/t) EXW in June 2026, while FeSi75 was quoted at 5,900–6,100 RMB/tonne ($873–902/t). By September 2026, a correction set in-Ningxia FeSi75 pulled back to roughly 5,700–5,800 RMB/tonne as steel mill tenders came in below expectations and traders unwound speculative positions.
⚡ What Drives Ferrosilicon Prices? A Cost Stack Breakdown
Ferrosilicon is one of the most electricity-intensive ferroalloys to produce. Smelting one tonne of FeSi75 in a submerged-arc furnace consumes roughly 8,400–9,000 kWh (8–12 MWh depending on grade and recovery). This single fact explains why power tariffs, more than any other input, dictate price floors and profit margins.
🔌 Electricity: The 42% Elephant in the Room
Energy accounts for roughly 42% of delivered ferrosilicon cost. Producers with access to low-cost hydropower-such as Elkem in Norway-hold a structural advantage over those in markets with volatile grid pricing. In China, the shift toward market-based electricity trading means ferrosilicon smelters in Ningxia and Inner Mongolia now face prices that correlate more tightly with coal costs and renewable-energy availability. The Eurostat industrial electricity price index for Europe rose sharply in 2025–2026, contributing to the faster price escalation in the EU compared with Asia.
⛏️ Raw Materials: Quartz, Coke, and Semi-Coke
Quartz and silica feedstock represent about 18% of production cost. Global contract prices for metallurgical-grade quartz moved from roughly $80/tonne to $85/tonne between early 2025 and Q2 2026. Reductant costs-metallurgical coke, coal, and semi-coke-make up approximately 16%. Chinese semi-coke (lan tan) prices in Shenmu traded at 1,100–1,350 RMB/tonne for mid-size material through mid-2026, providing a floor under ferrosilicon pricing even during demand lulls. Electrode paste consumption adds another 9%, and producers report that low-ash coke commands a premium because high-alumina slags increase tap temperatures and accelerate electrode wear.
🌍 Regional Price Spreads: Where You Buy Matters
As of August 2026, the gap between the cheapest and most expensive ferrosilicon markets exceeded $350/tonne for the same 72% grade. Here is the regional snapshot:
| Region | Basis | Price (USD/t) | MoM Change |
|---|---|---|---|
| China | FOB Tianjin | 1,160 | +1.8% |
| Europe | CIF Rotterdam | 1,270 | +1.6% |
| Middle East | CIF Jebel Ali | 1,080 | +1.7% |
| Japan | CIF Tokyo | 1,430 | +1.5% |
| Americas | CIF Houston | 1,320 | +1.5% |
The Japan premium reflects both logistics costs and a tight domestic supply base. The Middle East discount is partly explained by lower freight from India and direct shipments from Central Asian producers. Europe sits in the middle, but EU safeguard measures on ferroalloy imports-announced in November 2025-and ongoing anti-dumping duties on Chinese ferrosilicon (15.6% to 31.2%) add a policy premium that keeps regional prices structurally above Asian benchmarks.
🔮 Outlook: What Buyers Should Watch in Late 2026
Several signals suggest ferrosilicon prices will remain volatile but supported through Q4 2026:
- Chinese supply discipline: With national operating rates near 42.6% in late 2025 and only modest recovery into 2026, Chinese producers are not flooding the market. Any environmental inspections or power-rationing events in Ningxia or Inner Mongolia could tighten supply quickly.
- Steel mill tender dynamics: HBIS Group's monthly ferrosilicon tenders serve as a bellwether. The January 2026 tender settled at 5,760 RMB/tonne for 72% FeSi, up 100 RMB/tonne month-on-month. Tender outcomes in Q3–Q4 2026 will set the tone for spot markets.
- Electricity cost trajectory: Industrial power prices in Europe and China are expected to trend 3–8% higher in 2026 versus 2025 averages, widening peak/off-peak spreads. Producers with captive power or long-term hydropower contracts will gain margin; merchant-power smelters will pass costs through.
- Trade policy: The EU's third anti-dumping sunset review, concluded in July 2026, maintained duties of 15.6% to 31.2% on Chinese ferrosilicon for another five years. US preliminary anti-dumping and countervailing duty determinations on silicon metal imports, announced in October 2025, are also supportive of North American pricing.
Bottom line: buyers should expect 72% FeSi to trade in the $1,050–$1,250/tonne range through year-end 2026, with upside risk if power costs spike or Chinese export volumes tighten.
❓ Frequently Asked Questions
How much ferrosilicon is consumed per tonne of steel?
Approximately 3–5 kg of 75% ferrosilicon is used per tonne of steel produced, mainly for deoxidation in the ladle. Higher-grade specialty steels may require slightly more, while some EAF operations using direct reduced iron (DRI) can operate at the lower end of that range.
Why is FeSi75 more expensive than FeSi72?
Higher silicon content requires more energy input per tonne of alloy. FeSi75 smelting sits at the upper end of the 8–12 MWh/tonne energy band, and Si recovery rates decline as target silicon rises. The price spread between 72% and 75% grades typically runs $50–$80/tonne in normal market conditions.
What caused the September 2026 price correction in China?
A combination of speculative profit-taking after an earlier rally, steel mill tenders coming in below market expectations, and cautious downstream restocking. The 10-day moving average crossed below the 20-day average-a technical signal that triggered further selling from traders holding high-cost inventory.
How do EU anti-dumping duties affect European buyers?
Chinese ferrosilicon entering the EU faces ad valorem duties of 15.6% to 31.2%, depending on the producer. This effectively raises the landed cost of Chinese material by $180–$400/tonne at current price levels, giving European producers such as Elkem (Norway) and Ferroglobe a pricing umbrella. Buyers often source from Norway, Iceland, or Russia (which faces its own 17.8%–22.7% duty) to minimize duty exposure.
Is ferrosilicon price correlated with silicon metal price?
Yes, but imperfectly. Both products rely on quartz feedstock and submerged-arc furnace capacity, so electricity and raw-material shocks move both markets. However, ferrosilicon is more tightly linked to steel production cycles, while silicon metal tracks aluminum and solar-sector demand. In April 2026, US silicon metal (553 grade) averaged 150.5 cents/lb versus 112 cents/lb for ferrosilicon.
What is the cheapest way to source ferrosilicon in 2026?
For buyers with flexible logistics, FOB China remains the lowest benchmark at roughly $1,160/tonne for 72% FeSi. However, freight, insurance, duties, and inland delivery can add $200–$400/tonne depending on the destination. Buyers in the Middle East benefit from the shortest shipping lanes from India and Central Asia, while European buyers may find that duty-free Norwegian material is competitive on a delivered basis once duty and freight are included.
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